success at evans shoal north

Eni have had success at ESN1.

(* Eni release here *)

'The Evans Shoal North 1 well, drilled in 111 meters water depth and to a target depth of 3955 meters, is 12 km away from the Evans Shoal-2. Results indicate that these wells share common reservoir characteristics and are in hydraulic communication. During the well production test the gas flow reached the facility constraint of 30 MMscf/day. Eni estimates that the Evans Shoal gas field contains at least 8Tcf of raw gas in place.'

If we compare this to the MEO findings at Blackwood 1:

(* B1 update 2008 *)

We can see the MEO estimate of GWC is at 3225mMD whereas Eni reached a TD of 3955m at ESN1.

The trick now will be for the B2 well where Eni/MEO will be confirming either MEO's estimate of 3225m or Eni's reading of a deeper GWC which would mean Blackwood could be a larger reservoir (and a possible link with ES) than the original estimate of 1.7Tcf raw gas.

A flow of 30 MMscf/day at ESN1 bodes well for Blackwood as it proves the younger wells have better permeability once the gas moves away from the Malita Graben and Heron.

The other question is the processing of the gas at ESN1. Eni's release states:

'Eni remains committed to fast track development of the significant and known resources in this exploration area.'

TS would be the obvious fast tracked solution. Will MEO go the full circle after losing Evans Shoal 13 years ago?

8 Tcf could mean Eni just vent the CO2 or re-inject (which could be difficult in the area). MrM has touched on Eni/TS on another thread. TS is an obvious choice. 1.7Tcf at Blackwood is enough for TSMP1. Any further capacity at B1 would improve the output.

MEO will have 25% B1 but will Eni JV MEO and the Chinese interest at TSMP/TSLNG?

There are so many scenarios but confirmed gas at ESN1 is definitely a positive outcome for MEO IMO.

Looking forward to the B2 drilling programme and MEOs future which has been a long time coming.

#:>))